A supply chain or supply network is a set of cooperating entities that, together, accomplish some or all of the work of producing a product or service and delivering it to a consumer. Some goods require little processing between production and sale, but many others are made up of hundreds or thousands of components, each of which in turn may be the end product of another supply chain involving more producers and processors. Since each stage in a supply chain or network contributes to the cost of the final product, it is important for stages to operate efficiently, so that the costs of producing the product permit it to be priced competitively with similar alternatives. Inefficiencies at any stage may result in lost business for the inefficient entity, or even in the demise of the product or service.
Although different supply chain stages may perform wildly different functions, one common activity that occurs at most stages is the receipt of materials from a previous stage. (Even original supply chain stages that produce raw materials to feed a chain usually receive supplies or other materials for use in the stage.) The apparently-simple act of accepting a delivery has wide-ranging implications on enterprise operations. For example, accepting goods may create or affect contractual or legal obligations between the shipper and receiver. The goods may be a rate-limiting input to a process occurring at the stage, so new activity may have to be scheduled. Indeed, if the goods are perishable, their arrival may require stage activity to start quickly.
Procedures to streamline the “receiving” activities in an organization can reduce the time spent and the costs incurred in this common, but important, processing step.